Accounting Progect Essay

Managerial Accounting Project
Cost Accounting Classifications
1. Where did you observe the production process? What was the product being made?
I observed the process at McDonald’s and online video. The products are burgers and playing cards.
2. Describe three direct materials in the product. Why would these direct materials be classified as such? When are these materials added in the production process?
Direct materials are raw materials that can be physically and directly associated with the finished product during the manufacturing process are direct materials. Those materials are all directly come along with the finished products.
In McDonald’s, the buns, wraps, pickles, onions, lettuce, meat patties are all direct materials. When we are making burgers we toast the buns first, and then put wrap on the table; put onions, pickles, and meat patties all that; the last step is wrapping the burgers.
In the video, two-layer card board, printing ink, and the plastic wrap are the direct materials. The workers put the color ink between different rolls in the printing machine to make sure the colors can be printed evenly, and then put the card boards through card transporter, that last step is to use the wrapper to cover the cards deck.
3. Describe two people (by job function) whose wages would be classified as direct labor costs. Why would these wages be classified as direct labor?
Direct labor is the work of factory employees that can be physically and directly associated with converting raw materials in to finished goods.
In McDonald’s case, a crew member as a grill person like me, and the front counter person who makes the same wage like me, can also be classified as direct labor.   Our working position and our job duties are directly related with serving food and drinks, the finished products, so that the wages we made can be classified as direct labor cost.
In the video of making playing cards, the seller wrapper and the ink worker are two direct...